Amortize
Verb
Definition: To gradually end a debt or financial obligation by making regular payments over a period of time.
Synonyms: Pay off, Clear, Settle
Antonyms: Incur, Accumulate, Increase
- She amortized her mortgage over a span of 15 years.
- The company plans to amortize the loan through monthly payments.
- "Amortize" sounds like "more ties", imagine continuously paying off your debt until you have no more ties to it.
Etymology:
The word "amortize" comes from the Old French "amortir", meaning "to kill", which was derived from the Latin "ad mortem", meaning "to death". In Medieval Latin, it was used to describe the extinguishing of a debt or an annuity by means of a fixed payment.
Historical Usage:"Amortize" has been used in financial and accounting contexts since the 17th century.
Related Idioms:
"Amortize a loan"
Explanation:Refers to the process of paying off a loan gradually through regular payments over time, usually with interest included.
Misconceptions:
Confusing "amortize" with "amortization schedule".
Explanation:The term "amortize" refers to the act of gradually repaying a debt, while an "amortization schedule" is a table or a spreadsheet that illustrates the repayment plan, including the breakdown of principal and interest payments over time.